EN 
BR 
Forum Replies Created
-
Posts
-
Hello, Maria!
Thank you for your interest in our content. As a non-resident, you shouldn't have any difficulties buying a property in Brazil, as you only need a CPF to purchase it. The taxes relating to the purchase of the property are the ITBI (municipal tax, usually 2%-3% of the property's value, depending on the municipality) and after that the IPTU, once a year. Income tax is only charged on the sale of the property. The final step is to formalize that the source of the funds you are using to buy the property comes from an asset you built up abroad as a non-resident, and which has therefore not been subject to income tax over the years and to filing returns.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Fabiana!
Thank you for your interest in our content. Submitting the Declaration of Final Departure from the Country is recommended in order to update your CPF information and to avoid the risk of taxation in Brazil on your income from abroad. It is also recommended to justify that the source of the funds you sent to Brazil to buy the property comes from assets you built up abroad as a non-resident, and which have therefore not been subject to income tax over the years or to filing returns.
After formalizing your permanent departure as a non-resident in Brazil, you can also be a partner (and in some cases a director) of a new company incorporated in Brazil. In this case, there are some differences in relation to the same investment made by the tax resident, but nothing that would jeopardize your objectives. It's difficult to give a more concrete recommendation in a blog post, as it's necessary to better understand your reality. But from the information you have provided, it is possible to do what you want.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Lamb!
Thank you for your interest in our content.
The pandemic situation has brought different responses in each country. The OECD expressly recommended that countries stop counting days of stay in the country towards tax residency whenever this was due to travel difficulties created by the pandemic. The US suspended it for 120 days in 2020 because of this, but the IRS has not spoken out on the matter, either for or against the taxpayer.
It's difficult to offer a recommendation in a blog post. However, I believe that it is possible to justify maintaining the definitive intention (the criterion for acquiring and maintaining tax residency in Brazil) even if a person has been absent from Brazil for more than 12 months, as long as they fulfill all the obligations of a tax resident in Brazil correctly. I argue that the 12 months is a legal presumption, which admits proof to the contrary, which can be done by submitting declarations as a resident. The situation created by the pandemic is another possible proof, depending on the context in which it occurred.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Marcelo!
Thanks for the compliment. I did a quick simulation on the SicalcWeband I had no trouble issuing a DARF slip with code 9478. Perhaps you should try again. We've had difficulties with the site before, and then it worked again.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Fabricio!
Thank you very much for your interest in our content. An attorney is exactly that: someone who acts on your behalf to solve your problems. That's why he's just an intermediary. The money he receives from you is not his income, but yours. He could keep the funds for you, as long as it is clear in his declaration that this "extra" amount is a credit in your favor, not his property.
The Central Bank's regulations on non-resident bank accounts are a little more restrictive when it comes to the use of bank accounts, so it's a good idea to check with the bank or brokerage firm that will be making the exchange in advance so that they can send you the rental funds (when and if they do), in order to anticipate what documents they might ask for. This prevents bureaucracy from holding up your funds in Brazil.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Simone!
Thank you for your interest in our content. It's very difficult to give a recommendation to assess your case in a blog post. In any case, as you left Brazil less than 5 years ago, it is possible to rectify your 2019/2018 declaration to convert it into a declaration of definitive departure from the country. This should formalize that you ceased to be a resident in June 2018, if you haven't filed any declarations in the following years.
If you return to Brazil in August 2022, you will have to file a normal declaration next year stating your situation on the date of your return to Brazil. There are some specific rules for this situation, but they don't prevent you from correctly recognizing what actually happened: that you left Brazil to live abroad in 2018 and that in 2022 you will resume your tax resident status in Brazil.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Nilson!
Thank you for your interest in our content. It's difficult to give a recommendation in a blog post about a specific case, without analysis. More generally, if your son had little income in Canada because he was studying, and has filed a tax return in Brazil every year stating this income, it is reasonable for him to leave only now. In the most recent article I published, about the "nebulous definitive mood", you'll see that the Judiciary considered a person who was in Boston for studies and didn't formalize their definitive departure to be domiciled in Brazil. It's a similar situation to your son's.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hi, Camila!
Thank you for your interest in our content. This subject is really quite confusing. The Dirf regulations and the Dirf Questions and Answers manual say nothing about the attorney-in-fact's responsibility for submitting this declaration. The logic is that if the attorney-in-fact is collecting the DARF forms under his CPF, he is the one who must submit the Dirf, to allow the IRS to cross-check the data about him. The real estate agency is not the source of payment (the source is the tenant), and is not obliged to take on the role of attorney-in-fact. The real estate company submits a different declaration, called DIMOB. I understand that it is you who should be listed as the landlord of the property.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Vivi!
Thank you for your interest in what we have written. The IRS advises that the couple's joint assets (such as an apartment bought after the wedding) must be reported on the income tax return of one of the members of the couple (or on his or yours) when they are both tax residents in Brazil.
It's difficult to give a recommendation in this post, as I don't know how you and your husband have been fulfilling your tax obligations (you haven't made your final exit, nor have you filed any returns; I don't know your husband's situation). I can only give you a more concrete opinion in a consultation.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Luiza!
Thank you for your interest in our content. I'm not sure I understand your problem. Civil servants have specific retirement rules, depending on whether it's the INSS or their own system, and as far as I know these rules don't change depending on whether the person lives in another country, leaves permanently or not (what does change is the taxation on the redemption of benefits, but not the contributions).
Although I haven't fully understood the issue, I hope I've helped in any way I can. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Marco Antônio!
Thank you for your interest. This client of yours doesn't need to declare the money that has left the country. Most likely, a paying source in Brazil paid him income and reported it to the tax authorities as resident income. This led to the CPF status "pending regularization". It would be necessary to find out who informed the IRS incorrectly, present the letter stating that he was a resident and forward the information to the RFB, asking for the pending status to be removed and the CPF to be regularized. This should be a simple procedure, but the person receiving the request doesn't always have experience with this type of problem.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Claudio!
Thank you for your interest in our content. The IRS does not offer guidance on your question. However, if the resident's situation is any guide, you could use all the expenses incurred in the same month to calculate the rental tax as you wish. The expenses allowed by the legislation refer to condominium, IPTU and collection costs (i.e. platform costs) borne by the landlord. The electricity bill was not included as a deductible expense.
Since the Dirf program only informs you of the income and the tax withheld, then in this case you would have to do the calculation manually and keep the memory.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, José!
Thank you for your interest in our content. The Declaration of Final Departure from the Country only has legal deductions. There is no simplified deduction, and the adjustment payment must be paid in a single installment.
As far as we know, the IRS has no specific rules on income tax refunds. In principle, they will deposit it in the account you indicate in the DSDP, even if it's a normal bank account. Bank account restrictions come from the Central Bank, hence this context.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Edgar!
Thank you very much for your interest. The office is currently growing, and we're studying the use of other social media. It takes up a lot of my personal time to produce videos, since today I prepare all the content you read. Today our presence is only on Google and LinkedIn, but it's very possible that YouTube will be the next medium.
I can say that today, as far as I know, the banks with the best cost/benefit ratio for opening a non-resident account are Santander and Banco Rendimento (the latter specializes in foreign exchange for individuals). Brokerages have shown different policies, with XP being the one that usually says it doesn't liquidate investments, but blocks new contributions. They don't block you from redeeming (on the contrary, they currently prefer it). In any case, it's best to contact your broker directly and ask for their policy, as it's an internal decision.
With the New Foreign Exchange Law (Law No. 14.286/2021), we expect the Central Bank to release new regulations this year, which will come into force in 2023. We're trying to talk to them again to try to ensure a lasting solution to this problem, since the law doesn't depend on changes. It all depends on BACEN.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Solomon!
Thank you for your interest. The general taxation regime for non-residents with regard to financial income boils down to treating them the same as residents. So interest on savings remains exempt, regardless of the status of your account.
On Friday, we won a small victory, dealing directly with the Ministry of the Economy in conjunction with the Internal Revenue Service. The hope is working! We'll publish what happened soon.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hello, Claudio,
Thank you for sending the text in its original trilingual version. I just need to make a note: the text is no longer in force, so you probably made the best decision.
Brazil and Germany no longer have an agreement to avoid double taxation since 2006. Germany denounced the agreement, basically because it didn't agree with how the IRS was applying it in practice, following a totally divergent line from the OECD. At the same time, Spain also complained, but reached an agreement with the IRS on our interpretation of the agreement.
In 2013, the IRS signaled that it would be willing to sign a new agreement with Germany along the same lines as the one we signed with Switzerland, which came into force in 2022. But as far as I know, Germany has not commented on the matter.
We have lost a lot by no longer having an agreement with Germany, and even more by not having an agreement with the United States. Since Brazil has finally decided to change tack and join the OECD, it's possible that things will change. In fact, the new agreements with Switzerland and the United Arab Emirates show that we have evolved as a nation.
Thanks again for all your interest in our work!
Hello, Pedro!
Thank you very much for your interest in our content. Basically, what you earned more than 5 years ago has already been reached by the statute of limitations, so neither you can declare it, nor the IRS has the right to collect it. So we're really talking about the last 5 years.
Your wife can act as your proxy in Brazil to pay the taxes. This is fine if the property is your private property (i.e. if you are married with separation of property, or if you owned the property before you were married with partial communion of property).
If the property in question is jointly owned by you and your wife, the IRS allows 50% of the rent to be attributed to each of you or 100% of the rent to be attributed to one of you. Perhaps this is another way to regularize your situation.
I hope I've helped. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
Hi, Leandro!
Thank you for your interest in our content. This issue of the prosecutor really is a "Bermuda triangle" in terms of the rule. As I said, the original law dates from the 1940s. As a general rule, you're right: the tenant is the source of payment, and he should withhold the tax himself and pay it to the IRS. But the 1940s law created the figure of the procurator precisely because it was thought that the tenant wouldn't do a good job.
When I consulted the old Income Tax Regulations (1980s), it said that the attorney-in-fact would submit the information to the Revenue, on paper, including a copy of the power of attorney. I don't believe this happened in practice, as this provision disappeared in the 1990s.
What I believe happened is that the Revenue Department never thought to provide for the obligation of the attorney to submit the Dirf. When the system went off the drawing board and became automated, starting in the second half of the 1990s, there was a gap in the rules, which was prolonged simply due to a lack of revision.
It's possible to say that, in terms of the system, submitting the Dirf is the best way for the IRS to cross-reference information on payments and associate it with a person. Without submitting the Dirf, the information is "loose" in the system. But there is, at least today, no express obligation for the attorney-in-fact to submit it (except for a brief comment in Question 192 of the IRPF 2021 Questions and Answers Manual(which is just a guideline from the IRS). The IRS could carry out this work with a pen stroke, simply by updating the normative instruction that deals with Dirf, without even having to tinker with the Dirf program.
In legal terms, I believe that this loophole prevents you from being penalized for not having filed the Dirf in the past. Last Friday, we created a first channel to contribute to an IR Tax Reform, and the result was very positive. One of the points would make it possible to improve the situation of rents.
I hope I've helped, Leandro. If you need our support, just contact us at WhatsApp or by e-mail contato@tersi.adv.br!
